Anant Raj, E2E Network shares soar 10% post Budget 2026 announcement for data centres; tax holiday announced

The stock of Ananat Raj rallied as much as 7.43% to an intraday high of ₹570.55 per equity share on the National Stock Exchange (NSE) on Monday. E2E Network shares soared 10% to the session’s peak of ₹2,526 apiece.

However, Netweb Technologies' stock declined 5.29% to an intraday low of ₹3,130.90 per unit.

This comes after the Union Finance Minister, during her Budget speech on Sunday, February 1, proposed a long-term tax initiative aimed at encouraging foreign companies to expand cloud services in India in the Union Budget 2026.

Union Budget 2026-27: Key announcements for Data centres

The government, recognising the need to enable critical infrastructure and boost investment in data centres, announced a tax holiday for any foreign company that provides cloud services globally using data centre services from India, which will be valid up to 2047.

“It will, however, need to provide services to Indian customers through an Indian reseller entity. I also propose to provide a safe harbor of 15% on cost in case the company providing data center services from India is a related entity,” Sitharaman said.

To harness the efficiency of just-in-time logistics for electronic manufacturing, I propose to provide a safe harbor to non-residents for component warehousing in a bonded warehouse at a profit margin, the Finance Minister added.

Here’s what experts said

Industry experts observed that the announcement of a tax holiday for data centres until 2047 and the expansion of the semiconductor mission will reduce investment uncertainty and improve capital confidence.

S Anjani Kumar, Partner at Deloitte India, noted that the tax holiday and safe-harbour regime for global and domestic cloud providers using data centres situated in India signals a bet on India as a long-term compute hub, which is the infrastructure backbone for all this AI adoption, as per a PTI report.

Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank, stated that initiatives like tax incentives for data centres and cloud services, among others, provide new avenues for inclusive financing and investment facilitation.

According to a Morgan Stanley report, the FY27 Budget supported economic growth through three main segments, with one of them being the government’s focus on the services sector through steps such as a higher safe harbour thresholds, a tax holiday for data centres, and a target to reach a 10% share of global exports by 2047.

The report added that the long-dated 20-year tax holidays (to 2047) and safe-harbour margins for India-based data centres “should support hyperscalers, infra platforms, and digital ecosystems.”